CC SR 20260120 03 - RPV Community Foundation
CITY COUNCIL MEETING DATE: 01/20/2026
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA TITLE:
Consider a status update on the formation of the RPV Community Foundation.
RECOMMENDED COUNCIL ACTION:
1) Receive and file a status update on the formation of the RPV Community
Foundation;
2) Direct staff to continue filing all remaining necessary documents with the State to
formalize the RPV Community Foundation; and,
3) Schedule the first RPV Community Foundation Board of Directors meeting for
March 17, 2026 at 5:30 p.m. in advance of the regular scheduled City Council
meeting.
FISCAL IMPACT: The fiscal impact includes Staff time and City Attorney fees of $5,316
to manage the formation of the RPV Community Foundation. Both
are included in the Fiscal Year (FY) 2025-26 Adopted Budget. VR
Amount Budgeted: $10,000
Additional Appropriation: N/A
Account Number(s): 101-400-1210-5101
(Legal Services – Professional Services ) VR
ORIGINATED BY: Catherine Jun, Deputy City Manager CJ
Irantzu Pujadas, Administrative Analyst IP
REVIEWED BY: Same as below
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. IRS Letter Confirming Non-Profit Status (Page A-1)
B. California Franchise Tax Board Affirmation of Good Standing (Page B-1)
C. August 15, 2023 Staff Report (Linked)
D. April 18, 2023 Staff Report (Linked)
E. March 7, 2023 Staff Report (Linked)
F. December 20, 2022 Staff Report (Linked)
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BACKGROUND:
In 2021, the City’s Finance Advisory Committee (FAC) identified the need for a donor
program to stimulate philanthropic giving that would offset the costs of major initiatives
that benefit the Rancho Palos Verdes community. Examples may include building new
facilities, street median beautification, roadway improvements, tree removal or planting,
and community services. This concept was incorporated into the FAC’s FY 2021–22 Work
Plan and subsequently presented to the City Council for consideration on December 20,
2022.
Below is a timeline to date of all City Council actions on the proposed donor program:
December 20, 2022
• City Council considered three possible ways to stimulate philanthropic giving and
ultimately authorized Staff to research the formation of a nonprofit foundation that
can accept tax-deductible donations and in-kind support for major citywide
initiatives and services (Attachment F).
March 7, 2023
• After considering the research, City Council authorized Staff to prepare the
required formation documents to establish a nonprofit through the federal and state
governments.
• City Council also named the nonprofit as the RPV Community Foundation
(Foundation) and affirmed a governing structure with the City Council serving as
the Board of Directors (Attachment E).
April 18, 2023
• City Council approved the formation documents prepared by Staff (Articles of
Incorporation (AIC), By-Laws, and Conflict of Interest Policy) and authorized Staff
to file them with the appropriate State agencies.
• City Council directed Staff to obtain federal tax-exempt status through the Internal
Revenue Service (IRS) and to complete all statutory filings with the California
Attorney General and Secretary of State (Attachment D).
August 15, 2023
• Staff reported that all formation documents have been submitted to the State.
• Previously, FAC recommended issuing a Request for Proposals (RFP) for a
development consultant to conduct a feasibility study and lead a capital campaign
through the Foundation. The campaign would attempt to raise 30% of the cost to
develop the Civic Center Master Plan project. City Council directed staff to issue
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the RFP on August 15. However, Staff and FAC later agreed to place this initiative
on hold until the Foundation was officially formed. Finance Department will place
this item on a future FAC agenda as part of their FY 2025-26 Work Plan, while
recommending to resume the RFP process when both the Foundation and the
Civic Center Master Plan project are more fully developed and can be
communicated to potential donors in greater detail. (Attachment C)
DISCUSSION:
Staff and the City Attorney’s Office have since been working through the remaining steps
to establish the Foundation. There have been some lengthy delays due to the ongoing
landslide emergency that has diverted staff towards emergency response and mitigation
efforts. However, Staff wishes to now report that the Foundation has been officially
granted federal tax-exempt status under the Internal Revenue Code (IRC) § 501(c)(3)
and further designated as a Public Charity under IRC Section 509(a)(3) Type 1 , as of
October 2025 (Attachment A). These designations represent the most significant
milestone in the Foundation’s formation process and ensure that all activities carried out
under the Foundation are federal tax exempt.
However, there remains one major step (see below, in yellow) to receive state tax
exemption from state income and franchise taxes. The Administration Department is now
working through this step:
Status Required Steps for Non-Profit Formation
Completed Formation and Governance
• Approve the Articles of Incorporation (AIC) and authorize the Mayor
and Mayor Pro Tem to execute the AIC as incorporators
• Approve the By-Laws and Conflict of Interest Policy.
Completed California - Secretary of State (SOS)
• File the AIC (Form ARTS-PB-501(c)(3))
• File a Statement of Information (Form SI-100) within 90 days of
incorporation
Completed
Federal – IRS Requirements
• Obtain Federal 501(c)(3) tax-exempt status, by applying for
recognition to the Internal Revenue Service (Form IRS 1023).
• Obtain an employer identification number should there be any
members of staff designated as “employees” of the corporation
(Form IRS SS-4).
In Progress
California – Franchise Tax Board (FTB)
• The FTB affirmed that the Foundation is properly formed, actively
exists in California’s tax system, and is in good standing.
(Attachment B)
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Status Required Steps for Non-Profit Formation
• Staff will begin the process of obtain California tax-exempt
foundation status (Form 3500A).
The process to obtain state tax exemption requires filing the Form 3500A along with our
IRS non-profit status determination letter via the FTB. The FTB currently estimates an
11 month period for review and approval. However, Staff plans to reach out to our State
legislators this month to determine if there is a way to expedite this request.
In the meanwhile, the Foundation still has federal tax exemption standing and may begin
operating as a non-profit organization conducting charitable activities and soliciting
federal tax-deductible donations. However, the Foundation will still be subject to state
income and franchise tax until the FTB Form 3500A is approved.
The following table also lists other regulatory requirements that must be completed in the
future, once the Foundation becomes operational.
Status Other Steps
In Progress
California – Attorney General
• Register the Foundation (Form CT-1) (filed within 30 days of the
first receipt of assets)
Ongoing File the following reports on a routine basis:
o California Annual Information Return Form 199 to the FTB
(annually)
o Federal Annual Information Return Form 990 / 990-EZ / 990-
N to the IRS (annually)
o Charitable Oversight and Transparency Form RRF-1 to the
Attorney General Registry of Charitable Trusts (annually)
o Corporate Status Update Statement of Information Form to the
SOS (biennially)
As Staff awaits a determination on its Form 3500A, the City may now transition the
Foundation to its operational phase by setting the first Board of Directors meeting for
March 17, 2026 at 5:30 p.m. in advance of the regular scheduled City Council meeting
with meetings occurring on a quarterly basis moving forward.
At this first meeting, the City Council, serving as the Board of Directors, will be asked to
establish a meeting schedule and protocols; procedures to guide decision-making such
as donation acceptance and granting procedures; processes to file the necessary State
and/or Federal reports to maintain nonprofit status; setting Foundation priorities and
goals; and developing public outreach materials and status updates to keep the City and
community apprised of the Foundation’s activities.
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ADDITIONAL INFORMATION:
The City also operates the Gift to Parks program that receives donations for Recreation
and Parks Department events, programs, resources, and services that are available to
the entire community. For example, past donations have been directed towards Point
Vicente Interpretive Center educational displays, REACH activities, Whale of a Day, and
the Fourth of July Celebration. The Gift to Parks program will continue to operate
independently from the Foundation, which will focus on other improvements, projects, and
services.
CONCLUSION:
Staff recommends receiving and filing this update on the formation of the RPV Community
Foundation and providing staff with additional direction, as needed. Once the final steps
are complete, Staff will provide updates to the City Council and seek direction on the
operational phase of the Foundation moving forward.
ALTERNATIVES:
In addition to Staff’s Recommendations, the following alternative actions are available for
the City Council’s consideration:
1) Do not receive and file this update and request staff to provide additional
information at a future City Council meeting.
2) Take other action as deemed appropriate.
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A-1
A-2
B-1